BMW had planned to take over the agency model in Europe next year, but the rollout was postponed to 2027. This does not mean that the company has second thoughts. Actually, it is exactly the opposite. The introduction of direct sales for Mini last year in several European countries was an encouraging sign that it would also work for the core brand.
In an interview with Automobile news EuropeThe BMW board member Jochen Goller explained confidence in the shift: “To be honest, we are even more convinced than before.” While “Direct Sales” may sound like cutting out the middleman, retailers still play a role. The stationary business acts as an intermediary, but they are no longer a contractual partner.
The agency model brings fixed prices for customers in every country and solid commissions for retailers. As a result, haggling disappears because the car manufacturer and not the dealer has the cars and controls pricing. Direct sales improve the transparency of the purchase process and save the car manufacturers considerable costs. In theory, it is a win-win-win situation: BMW reduces expenses, customers enjoy clear and consistent prices and retail partners still earn money for every transaction.
Few may remember, but BMW is no stranger to the agent tower model. It was one of the early users in the first half of the 2010s with the starts of i3 and i8. South Africa became a pilot market for a digital sales platform by 2020 and helped the company to prepare for the more comprehensive introduction of direct sales in Europe. As for the United States, it will not happen. The legal obstacles are simply too big. Many states expressly prohibit direct sales and make the agency model impossible in North America.
Explain European delay, said a BMW spokesman Automobile news Europe In an email:
“We have revised the ramp-up and M-to-market sequence for BMW to make minor adjustments to the overall time plan to ensure a quick implementation and a scale of operational excellence. The exact schedule for the introduction in individual markets is announced at a later point in time as planned.”
Source: Automobile news Europe
